SaaS ERP paying options


What do you think of the following business model for SaaS ERP:

  • GIVE FREE ACCESS FOR 2 users (or so) per organization and charge for additional users.

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asked Oct 11 '11 at 18:45
1 point

2 Answers


That is not a business model. A business model is how your business makes money. What you have proposed is a marketing pitch. What do I think of that marketing pitch? Depends on the target market whether or not 2 users will be of significant value -- and what the cost for additional users will be.

If the target market has an average of 5 users, and the cost per user is $1,000 -- thus the average 5 users will cost $5,000. If the competition is better quality with better service and features and the per user cost is $500, then I don't really care a lick about your offer.

If on the other hand the target market has 10 users, and the cost per user is $250 -- thus the average user will cost $2,500. If the competition is of equal quality, service and features -- and their per user cost is $300 then your offer might be compelling as it represents a savings of over 20%.

answered Oct 12 '11 at 12:53
Joseph Barisonzi
12,141 points


You could argue that it was a really bad idea, as if you believed that your solution was really compelling you'd have customers beating down your door, and wouldn't have to give it away for nothing.

As always, the real answer is "It depends".

answered Oct 12 '11 at 17:18
Steve Jones
3,239 points

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